The 20RLT probably isn't enough. The recommendation I always read was the pump should provide 1000gph at 4 feet of head, and be pressure rated. From my experience, that was plenty of flow, but the 20RLT only puts out about 400gph at 4'. The 40RLT could be enough.
On my setup, the pump's intake was from a 1.5" bulkhead in the sump where the display drained into. The skimmer also drained into that area, but far enough away from the intake to avoid recirculation (not that recirculation is completely bad, in fact I thought a little bit was good).
There should be an MRC owners thread with pictures of different setups.